2x2 Graph Games Hamburger & Guyer -1- What do we do? for science: describe, formalize, predict, unify for policy: prescribe Game theory clarifies social, political and economic situations via interactive decision models. To be effective at affecting policy, ... Make it matter! Keep it simple! 2x2 Graph Games Hamburger & Guyer -2- How can we do it? 1. Find an important situation 2. Isolate its key aspects 3. Map to a precise model 4. Expand/contract the class of models 5. Elaborate / enumerate class members 6. Find specimen situation for a model 7. Is it important? If yes, go to #2. 2x2 Graph Games Hamburger & Guyer -3- Contracting a Class of Models an example: +/- externalities What's the effect on Other of you taking x? loss > x loss < x gain < x gain > x Hence the 10 Separable Games (Hamburger, 1969) among the 78 (Rapoport and Guyer, 1966). One of them is Prisoner's Dilemma PD R T R 0,0 1,-2 T 1,-2 -1,-1 R = refrain T = take 2x2 Graph Games Hamburger & Guyer -4- Expanding a Class of Models example: Take-Some, but now with n players, where n = 3, 2x102, 3.5x107, 7x109 You take x. The total effect on all others is > x n-PD: collective action http://cs.gmu.edu/~henryh/npd/ (HH, 1973) payoffs to takers to non-takers number of non-takers 2x2 Graph Games Hamburger & Guyer Keeping it Simple One way is: just 2 players; e.g., 2 nations neighboring (France, Prussia) prominent (US, USSR) 2 economic actors buyout duopoly first/second mover labor, management 2 people spouses item roommates worker-boss -5- 2x2 Graph Games Hamburger & Guyer -6- Beyond the "2" & "2" more key aspects of games information about previous moves knowledge about all options & consequences computational resources 3rd player: unaligned, 3rd party, white knight, in-law time! 2x2 Graph Games Hamburger & Guyer -7- Time, a key aspect of games, is modeled better by graphs than by trees or matrices. trees imply staged steps matrices imply simultaneous blind moves Graph games for aspects of time a starting point simultaneous possible moves default no-action outcome growth and decay of utility (augmented GG's) deadlines (augmented GG's) 2x2 Graph Games Hamburger & Guyer -8- 2x2 Graph Games Hamburger & Guyer -9- Chicken & Deadlines chicken - in the news, but not analyzed confrontation with nukes and missiles status quo ok and stable defend missiles not cities? no deadline shutdown crisis starts with clock ticking (debt rising) spontaneous shift at deadline (ceiling) other deadlines sunset clauses election date quarterly report kids & cars 2x2 Graph Games Hamburger & Guyer -10- 3 Chicken Models Matrix Chicken 3, 3 2, 4 4, 2 1, 1 Graph Chicken, with ruinous default A 2, 3 1, 1 B and ... 3, 2 (4 3) 2x2 Graph Games Hamburger & Guyer -11- Debt Ceiling Legislation as a Graph Game If the U.S. debt ceiling is reached before congress raises it, the government shuts down, as it did in 1995. This situation is often called "a game of Chicken," but it's not that simple. A tf - t = 0 f(t) deadline: tf transition condition: tf - t = 0 decay function: f(t) 2x2 Graph Games Hamburger & Guyer -12- 2-State 2x2 Graph Games 2 examples Predator: 2 equivalent versions A A S(2,1) S(1,2) T(1,2) T(2,1) Opposite preferences. Each can reverse them. Thermostat A S(2,1) T(1,2) 2x2 Graph Games Hamburger & Guyer 3-state 2x2 Graph Games Graph games that are just tree games take this form. S A T B U The 6 (3!) Symmetric non-tree 3-state 2x2 GGs take this form. A T(,) S(,) B U(,) -13- 2x2 Graph Games Hamburger & Guyer 3-state 2x2 Graph Games continued The number of asymmetric games is 15 ( = 6C2 ) See paper for examples The number of roles in these games is 30 ( = 6P2 ) -14- 2x2 Graph Games Hamburger & Guyer -15- Legislating on Health in the U.S. Senate modeled as one of the 15 asymmetric 3-state 2x2 graph games A T(1,3) S(3,2) B U(2,1) Actions for each: {yield, hold} Utilities: (politics, beliefs, danger) A accepts "party of no" label. B needs results; clock is ticking. Neither wants to yield. Other aspects: Bill can change over time. Mavericks are part of context.